Saudi megaproject Qiddiya plans iconic buildings, metro link with Riyadh airport

Roughly a third of the 366 square kilometers (sqkm) of the land area of Qiddiya will be planned and developed in the first phase. (File/AFP)
Short Url
Updated 10 December 2020
Follow

Saudi megaproject Qiddiya plans iconic buildings, metro link with Riyadh airport

Saudi Arabia’s megaproject Qiddiya will house iconic buildings as it works with companies to build a “disruptive destination”, offering a unique combination of innovative experiences in entertainment, sports and arts, Kareem Shamma, Chief Development Officer of Qiddiya Investment Company (QIC), told Argaam in an exclusive.

“There are plans to connect Riyadh’s airport by Metro to the heart of Qiddiya’s City Centre. Qiddiya will also be connected to other modes of Riyadh’s public transportation network,” he further added.

Roughly a third of the 366 square kilometers (sqkm) of the land area of Qiddiya will be planned and developed in the first phase. So far, the developer has awarded 10 construction contracts worth SAR 2 billion since the start of construction to Saudi companies.

The COVID-19 pandemic and the resulting economic situation have not had any significant detrimental impact on Qiddiya’s future plans or strategy, Shamma stated. The first phase is all set to open in 2023.

“There are many contracts and tenders in the pipeline as we begin to deliver the built environment,” the executive said, emphasizing the importance of making Qiddiya as accessible as possible.

Here are excerpts from Argaam’s interview with QIC’s chief development officer.

Q: What new contracts and tenders are planned during 2021?

There are many contracts and tenders in the pipeline as we begin to deliver the built environment. We currently have tenders out for the construction of the Plant Holding Nursery as we seek bids for procuring the professional construction supervision services.

We have large scale on-going contracts with local companies for mass grading, roads and bridges, site security and other enabling works. These firms include Haif Bin Mohammed Bin Abboud Alqahtani & Partners For Trading Contracting Co., Freyssinet Saudi Arabia Co. Ltd, Alkhorayef Water & Power Technologies, Saudi Pan Kingdom For Trading And Contracting (Sapac), Shibh Al Jazira Contracting Company (Sajco), and Abdulali Alajmi Co.

Q: Are you all set to open the first phase in 2023?

This year has been extremely busy as the project moves forward. We have awarded major contracts, and construction has continued on site with roads and bridge works, as well as mass earthworks in preparation for follow-on building work.

For our overall timeline, we will be continuing with both heavy construction and developing strategic partnerships well into 2022, after which we move into the testing and commissioning phases ahead of our grand opening date in 2023.

Q: Has Qiddiya masterplan undergone any change since its launch?

All masterplans for projects like this undergo modifications as progress is made. The concept masterplan has already been approved as of last year. There might be some changes to some assets as the more detailed masterplan evolves, but the overall concept of the project will remain unchanged.

Q: Can you share the plans for the new phases?

Qiddiya’s masterplan has been developed with the first phase scheduled to open in 2023. It will include over 60 projects and more than 300 activities across the creative, hospitality, arts and culture, entertainment and sporting sectors.

The phase 2, and subsequent phases, is planned for expanding Qiddiya’s offerings and growing the project’s capacity to enable sustainable growth of the project and to ensure repeat visitation.

Q: Did COVID-19 impact your work schedules?

The Qiddiya project covers a land area of some 366 sqkm, of which roughly one third will be planned and developed in the first phase. The COVID-19 pandemic and the resulting economic situation have not had any significant detrimental impact on our future plans or strategy.

We were able to prepare for the pandemic by empowering our staff with the right equipment and technology so that they were able to work remotely and continue a ‘business as usual’ approach. Adhering to government protocols, we have now opened our offices, and our staff is working here on alternate days and from home for the rest of the time.

Q: Is there any plan to have transportation links with Riyadh airport?

It is important to make Qiddiya as accessible as possible. There are plans to connect Riyadh’s airport by Metro to the heart of Qiddiya’s City Centre. The project will also be connected to other modes of Riyadh’s public transportation network. We hope that the public road connections to the site will be upgraded in the near future.

Q: What kind of sustainable infrastructure or green technologies do you plan to use in the mega project?

Qiddiya embraces the sustainability goals outlined in the Saudi Vision 2030 and has devised a sustainability policy which not only incorporates these initiatives to ultimately respect, protect and enhance our natural landscape but also elevates in importance four of these main pillars of sustainability.

These include efficient waste management through reducing quantities of waste, in the first instance, and re-using and recycling waste thereafter; increasing biodiversity on Qiddiya’s land; promoting the optimal use of our water resources by reducing consumption and utilizing and re-using water efficiently; and creating pleasant outdoor microclimates to encourage pedestrianization.

Given the special nature and responsibility of Qiddiya as a giga project, we have elevated these four key components of the overall sustainability platform, such that they will be given special attention and extraordinary effort throughout the entire lifecycle of Qiddiya, from construction to operation and beyond.

Q: Are you planning iconic projects within Qiddiya?

Qiddiya’s vision is to create a disruptive destination recognized on the world stage as the unique combination of the most innovative experiences in entertainment, sports and arts. Therefore, we are working with companies to create iconic buildings to house these activities and bring this vision to life.

Powered by Argaam


Oil Updates — prices dip as demand optimism fades 

Updated 07 January 2025
Follow

Oil Updates — prices dip as demand optimism fades 

BEIJING/SINGAPORE: Oil prices eased on Tuesday, extending losses into a second consecutive session after last week’s rally, although concerns about tighter Russian and Iranian supply amid widening Western sanctions checked losses, according to Reuters. 

Brent futures edged down 8 cents, or 0.1 percent, to $76.22 a barrel by 07:52 a.m. Saudi time, while US West Texas Intermediate crude fell 15 cents, or 0.19 percent, to $73.42. 

Both benchmarks slid on Monday, after rising for five days in a row last week to settle at their highest levels since October on Friday amid expectations of more fiscal stimulus to revitalize China’s faltering economy. 

“This week’s weakness is likely due to a technical correction, as traders react to softer economic data globally that undermines the optimism seen earlier,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish economic news from the US and Germany. 

Also dragging on oil prices is the rising supply from non-OPEC countries that, coupled with weak demand from China, is expected to keep the oil market well supplied this year. 

Market participants are waiting for more data this week, such as the US December nonfarm payrolls report on Friday, for clues on US interest rate policy and oil demand outlook. 

“The move higher in crude oil prices appears to be running out of momentum,” ING analysts wrote in a note. 

“While there has been some tightening in the physical market, fundamentals through 2025 are still set to be comfortable, which should cap the upside.” 

Worries over tightening Russian and Iranian supply amid sanctions, however, kept a floor under oil prices. 

The uncertainty has translated into better demand for Middle Eastern oil, reflected in a hike in Saudi Arabia’s February oil prices to Asia, the first such increase in three months. 

Money managers raised their net long US crude futures and options positions in the week to Dec. 31, the US Commodity Futures Trading Commission said on Monday. 


Saudi Arabia issues $12bn three-part bond: NDMC

Updated 07 January 2025
Follow

Saudi Arabia issues $12bn three-part bond: NDMC

CAIRO: Saudi Arabia issued a $12 billion three-tranche bond, selling $5 billion, $3 billion and $4 billion in tenors of three, six and 10 years respectively, the National Debt Management Center said on Tuesday.
The total order book reached around $37 billion, equalling an over-subscription of three times the issuance, NDMC said in a statement.
The transaction is part of NDMC’s strategy to diversify the investor base and meet the Kingdom’s financing needs, it added. 

 


Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

Updated 06 January 2025
Follow

Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

  • Company handed over 3,099 vehicles in the fourth quarter ended Dec. 31
  • For 2024, production rose 7% to 9,029 vehicles, topping Lucid’s target of 9,000 vehicles

LONDON: Lucid Group beat expectations for quarterly deliveries on Monday, as the Saudi Arabia-backed maker of luxury electric vehicles lowered prices and offered cheaper financing to drive demand, sending its shares up more than 6 percent.
The company handed over 3,099 vehicles in the fourth quarter ended Dec. 31, compared with estimates of 2,637, according to six analysts polled by Visible Alpha. That represented growth of 11 percent over the third quarter and 78 percent higher than the fourth quarter a year earlier.
Production rose about 42 percent to 3,386 vehicles in the reported quarter from a year earlier, surpassing estimates of 2,904 units.


For 2024, production rose 7 percent to 9,029 vehicles, topping the company’s target of 9,000 vehicles. Annual deliveries grew 71 percent to 10,241 vehicles.
Lucid, backed by Saudi Arabia’s sovereign wealth fund, started taking orders for its Gravity SUV in November, in a bid to enter the lucrative SUV sector and take some market share from Rivian and Tesla.
Rivian on Friday topped analysts’ estimates for quarterly deliveries and said its production was no longer constrained by a component shortage. But Tesla reported its first fall in yearly deliveries, in part due to the company’s aging lineup.
Demand for EVs, already squeezed by competition from hybrid vehicles, could face another challenge as President-elect Donald Trump is expected to reverse many of the Biden administration’s EV-friendly policies and incentives.
The company also raised $1.75 billion in October through a stock sale that CEO Peter Rawlinson believes will provide Lucid with a “cash runway well into 2026.”
Lucid, whose stock was down about 28 percent in 2024, is scheduled to report its fourth-quarter results on Feb. 25.


Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

Updated 06 January 2025
Follow

Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

  • Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions
  • Facility builds on PIF’s recent success with sukuk issuances over the past two years

RIYADH: The Saudi Public Investment Fund has closed its first Murabaha credit facility, securing $7 billion in funding. This is a key step in the fund's plan to raise capital over the next several years. 

The Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions, according to a press release. 

A murabaha credit facility is a financing structure compliant with Islamic principles, where the lender purchases an asset and sells it to the borrower at an agreed profit margin, allowing repayment in installments. This structure avoids interest, adhering to Shariah laws. 

“This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia,” said Fahad Al-Saif, PIF’s head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division. 

 

 

The facility builds on PIF’s recent success with sukuk issuances over the past two years, further bolstering its financial strength and commitment to best practices in debt management. 

Rated Aa3 by Moody’s and A+ by Fitch, both with stable outlooks, PIF continues to solidify its position as a global financial powerhouse. 

The fund’s capital structure is supported by four main funding sources, including contributions from the Saudi government, asset transfers, retained investment earnings, and financing through loans and debt instruments. 

PIF’s strategy focuses on financing initiatives that contribute to economic growth in Saudi Arabia and internationally. 

The $7 billion murabaha credit facility is expected to bolster PIF’s liquidity, supporting its investments both locally and globally. 

By diversifying its funding sources through a Shariah-compliant structure, PIF looks to enhance its financial partnerships while complementing its existing financing tools, such as sukuk issuances. 

 

 

This aligns with its medium-term capital strategy, ensuring flexibility, competitive financing terms, and risk mitigation. 

Earlier in January, the National Debt Management Center also secured a Shariah-compliant revolving credit facility worth SR9.4 billion ($2.5 billion). 

The three-year facility, supported by three regional and international financial institutions, is designed to meet the Kingdom’s general budgetary requirements. 

Aligned with Saudi Arabia’s medium-term public debt strategy, the arrangement focuses on diversifying funding sources to meet financing needs at competitive terms. 

It also adheres to robust risk management frameworks and the Kingdom’s approved annual borrowing plan. 

PIF has been actively engaging in credit arrangements to support its investment initiatives and the Kingdom’s Vision 2030 economic diversification plan. 

In August 2024, PIF secured a $15 billion revolving credit facility for general corporate purposes, replacing a similar facility agreed upon in 2021. 

In addition to the revolving credit facility, PIF has diversified its financing instruments by issuing a $2 billion seven-year Islamic sukuk earlier in 2024 and planning to issue bonds in pounds sterling. 

These efforts are part of PIF’s strategy to leverage a variety of funding sources to support its expansive investment activities. 


Closing Bell: Saudi main market gains to close at 12,105 points

Updated 06 January 2025
Follow

Closing Bell: Saudi main market gains to close at 12,105 points

  • MSCI Tadawul Index increased by 1.07 points, or 0.07%, to close at 1,510.91
  • Parallel market Nomu lost 190.29 points, or 0.61%, to close at 30,864.09

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 34.87 points, or 0.29 percent, to close at 12,104.69. 

The total trading turnover of the benchmark index was SR6.43 billion ($1.71 billion), as 137 of the listed stocks advanced, while 94 retreated.  

The MSCI Tadawul Index also increased by 1.07 points, or 0.07 percent, to close at 1,510.91. 

The Kingdom’s parallel market Nomu dropped, losing 190.29 points, or 0.61 percent, to close at 30,864.09. This comes as 36 of the listed stocks advanced, while 43 retreated. 

Al Majed Oud Co. was the best-performing stock of the day, with its share price surging by 5.62 percent to SR158. 

Other top performers included SAL Saudi Logistics Services Co., which saw its share price rise by 5.42 percent to SR276, and Riyadh Cables Group Co., which saw a 5.17 percent increase to SR158.80. 

Al Mawarid Manpower Co. and Astra Industrial Group also saw a positive change, with their share prices surging by 5.17 percent and 5.05 percent to SR114 and SR195.40, respectively. 

United International Holding Co. saw the steepest decline of the day, with its share price easing 2.45 percent to close at SR183.40. 

Zamil Industrial Investment Co. and Nayifat Finance Co. both recorded falls, with their shares slipping 2.43 percent and 2.43 percent to SR36.15 and SR14.44, respectively. 

National Co. for Learning and Education and Saudi Electricity Co. also faced losses in today’s session, with their share prices dipping 2.27 percent and 2.25 percent to SR197.80 and SR16.54, respectively. 

On the announcement front, the Saudi Exchange announced the listing and trading of shares for Almoosa Health Co. on the main market starting Jan. 7. 

During the first three days of trading, daily price fluctuation limits will be set at plus or minus 30 percent, while static price fluctuation limits will also apply. 

From the fourth trading day onward, the daily fluctuation limits will revert to plus or minus 10 percent, and the static limits will no longer be enforced. 

In a separate development, Almujtama Alraida Medical Co. announced the signing of a credit facility agreement with Alinma Bank worth SR45 million. 

Alinma Bank saw a 0.17 percent decrease in its share price on Monday to settle at SR29.90.

The financing package includes an SR35 million revolving facility aimed at purchasing goods and an SR10 million revolving facility for capital expenditures. 

The credit facilities have a duration of three years and are secured by a promissory note. The objective of the financing is to support working capital requirements and fund capital expenditures, the company stated. 

Meanwhile, Mufeed Co. revealed the awarding of an SR41.5 million project focused on the development of concept, content, and execution of events aimed at reviving the Kingdom’s cultural and historical heritage. 

The contract, which is set to be signed on Jan. 20, will involve a legal entity as the counterparty. 

The project entails organizing unique activities designed to showcase and enhance the Kingdom’s rich historical and cultural narratives. 

Mufeed Co. saw a 2.93 percent increase in its share price by the close of Monday’s trading session to reach SR73.80.